For past baby gifts, I've turned bowls out of cherry and maple, carved a baby sized spoon out of cherry and carved a captive ring rattle.
The bowls are sized for babies, and are wide and low to make them harder for the yung'uns to knock over.
The captive ring rattle is like 3 links of a chain, with the middle link being twice as large as the outer 2.
Picture frames are good. Cradles obviously also work. If you want to put a little more work into it, a small dresser for baby clothes would be a nice gift. If you know the baby is going to be a girl, you could make her a cedar hope chest.
Just a few thoughts.
David
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